Inflation Gauge Used by Federal Reserve , Hits Highest Level Since 1982.<br />On July 29, the Bureau of Economic Analysis reported that the personal consumption expenditures (PCE) price index jumped 6.8% since last year.<br />The Fed uses the index as <br />its primary inflation gauge.<br />The 12-month gain is the highest since the 6.9% jump that occurred in January 1982.<br />Not including food and energy, core PCE <br />rose 4.8% compared to a year ago.<br />Monthly, core PCE increased 0.6%, <br />the most since April 2021.<br />Monthly, core PCE increased 0.6%, <br />the most since April 2021.<br />Nick Bunker, economic research director at job placement site Indeed, says, , “The rest of the economy might be slowing down, <br />but wages are speeding up.”.<br />Competition for workers <br />remains fierce as employers <br />have to keep bidding up <br />wages for new hires. <br />These red-hot wage <br />growth statistics may <br />fade in the near term, <br />but there’s a long way <br />for them to drop, Nick Bunker, economic research director <br />at job placement site Indeed, via CNBC.<br />CNBC reports that the Fed approved another 0.75 percentage point interest rate increase. .<br />Chairman Jerome Powell said the central bank is “strongly committed” , to combatting inflation and is paying attention to <br />food and energy costs even though it typically doesn't.<br />Chairman Jerome Powell said the central bank is “strongly committed” , to combatting inflation and is paying attention to <br />food and energy costs even though it typically doesn't.<br />The problem with the current <br />situation is that if you have <br />a sustained period of supply <br />shocks, those can actually <br />start to undermine or to <br />work on de-anchoring <br />inflation expectations. The <br />public doesn’t distinguish <br />between core and headline <br />inflation in their thinking, Jerome Powell, Federal Reserve Chairman, via CNBC.<br />Core inflation is a better <br />predictor of inflation <br />going forward, headline <br />inflation tends to be <br />volatile. So, in ordinary <br />times, you look through <br />volatile moves in commodities, Jerome Powell, Federal Reserve Chairman, via CNBC
